New Jersey § 45:15-17

§ 45:15-17.

of regulations by the New Jersey Real Estate Commission to effectuate the purposes

of L.2021, c. 281 . See, also, section 45:15-17 effective prior to the promulgation of regulations to effectuate the purposes of L.2021, c. 281 .> The commission may, upon its own motion, and shall, upon the verified complaint in

writing of any person, investigate the actions of any real estate broker, broker-salesperson,

or salesperson, or any person who assumes, advertises or represents himself as being

authorized to act as a real estate broker, broker-salesperson, or salesperson or engages

in any of the activities described in R.S.45:15-3 without being licensed so to do. The lapse or suspension of a license by operation of law or the voluntary surrender

of a license by a licensee shall not deprive the commission of jurisdiction to proceed

with any investigation as herein provided or prevent the commission from taking any

regulatory action against such licensee, provided, however, that the alleged charges

arose while said licensee was duly licensed. Each transaction shall be construed as a separate offense. In conducting investigations, the commission may take testimony by deposition as provided

in R.S.45:15-18 , require or permit any person to file a statement in writing, under oath or otherwise

as the commission determines, as to all the facts and circumstances concerning the

matter under investigation, and, upon its own motion or upon the request of any party,

subpoena witnesses, compel their attendance, take evidence, and require the production

of any material which is relevant to the investigation, including any and all records

of a licensee pertaining to his activities as a real estate broker, broker-salesperson,

or salesperson. The commission may also require the provision of any information concerning the

existence, description, nature, custody, condition and location of any books, documents,

or other tangible material and the identity and location of persons having knowledge

of relevant facts of any other matter reasonably calculated to lead to the discovery

of material evidence. Upon failure to obey a subpoena or to answer questions posed by an investigator

or legal representative of the commission and upon reasonable notice to all affected

persons, the commission may commence an administrative action as provided below or

apply to the Superior Court for an order compelling compliance. The commission may place on probation, suspend for a period less than the unexpired

portion of the license period, or may revoke any license issued under the provisions

of R.S.45:15-1 et seq. , or the right of licensure when such person is no longer the holder of a license

at the time of hearing, or may impose, in addition or as an alternative to such probation,

revocation or suspension, a penalty of not more than $5,000 for the first violation,

and a penalty of not more than $10,000 for any subsequent violation, which penalty

shall be sued for and recovered by and in the name of the commission and shall be

collected and enforced by summary proceedings pursuant to the “Penalty Enforcement

Law of 1999,” P.L.1999, c. 274 ( C.2A:58-10 et seq. ), where the licensee or any person, in performing or attempting to perform any of

the acts mentioned herein, is deemed to be guilty of: a. Making any false promises or any substantial misrepresentation; or b. Acting for more than one party in a transaction without the knowledge of all parties

thereto; or c. Pursuing a flagrant and continued course of misrepresentation or making of false

promises through agents, broker-salespersons, or salespersons, advertisements or otherwise;

or d. Failure to account for or to pay over any moneys belonging to others, coming into

the possession of the licensee; or e. Any conduct which demonstrates unworthiness, incompetency, bad faith or dishonesty. The failure of any person to cooperate with the commission in the performance of

its duties or to comply with a subpoena issued by the commission compelling the production

of materials in the course of an investigation, or the failure to give a verbal or

written statement concerning a matter under investigation may be construed as conduct

demonstrating unworthiness; or f. Failure to provide his client with a fully executed copy of any sale or exclusive

sales or rental listing contract at the time of execution thereof, or failure to specify

therein a definite terminal date which terminal date shall not be subject to any qualifying

terms or conditions; or g. Using any plan, scheme or method for the sale or promotion of the sale of real

estate which involves a lottery, a contest, a game, a prize, a drawing, or the offering

of a lot or parcel or lots or parcels for advertising purposes . If a broker participates in a promotion or offering of free, discounted, or other

services or products which confers upon the recipient a monetary benefit of greater

than $1,000, the broker shall provide written disclosure of the benefit to the recipient

and any information concerning the promotion or benefit as may be required by the

commission. A broker shall disclose in writing any compensation received for such promotion

or offer in the form and substance as required by the federal “Real Estate Settlement

Procedures Act of 1974,” 12 U.S.C. ss.2601 et seq., except that, notwithstanding the

provisions of that federal act, written disclosure shall be provided no later than

when the promotion or offer is extended by the broker to the consumer; or h. Being convicted of a crime, knowledge of which the commission did not have at the

time of last issuing a real estate license to the licensee; or i. Collecting a commission as a real estate broker in a transaction, when at the same

time representing either party in a transaction in a different capacity for a consideration;

or j. Using any trade name or insignia of membership in any real estate organization

of which the licensee is not a member; or k. Paying any rebate, profit, compensation or commission to anyone not possessed of

a real estate license, except that: (1) free, discounted or other services or products

provided for in subsection g. of this section shall not constitute a violation of

this subsection; and (2) a real estate broker may provide a purchaser of residential

real property, but no other third party a rebate of a portion of the commission paid

to the broker in a transaction, so long as: the broker and the purchaser contract

for such a rebate at the onset of the broker relationship in a written document, electronic

document or a buyer agency agreement; the broker complies with any State or federal

requirements with respect to the disclosure of the payment of the rebate; and the

broker recommends to the purchaser that the purchaser contact a tax professional concerning

the tax implications of receiving that rebate. The rebate paid to the purchaser shall be in the form of a credit, reducing the

amount of the commission payable to the broker, or a check paid by the closing agent

and shall be made at the time of closing; or l . Any other conduct, whether of the same or a different character than specified in

this section, which constitutes fraud or dishonest dealing; or m. Accepting a commission or valuable consideration as a real estate broker-salesperson

or salesperson for the performance of any of the acts specified in this act, from

any person, except his employing or contracting broker, who must be a licensed broker;

or n. Procuring a real estate license, for himself or anyone else, by fraud, misrepresentation

or deceit; or o . Commingling the money or other property of his principals with his own or failure

to maintain and deposit in a special account, separate and apart from personal or

other business accounts, all moneys received by a real estate broker, acting in said

capacity, or as escrow agent, or the temporary custodian of the funds of others, in

a real estate transaction; or p. Selling property in the ownership of which he is interested in any manner whatsoever,

unless he first discloses to the purchaser in the contract of sale his interest therein

and his status as a real estate broker, broker-salesperson, or salesperson; or q. Purchasing any property unless he first discloses to the seller in the contract

of sale his status as a real estate broker, broker-salesperson, or salesperson; or r. Charging or accepting any fee, commission or compensation in exchange for providing

information on purportedly available rental housing, including lists of such units

supplied verbally or in written form, before a lease has been executed or, where no

lease is drawn, before the tenant has taken possession of the premises without complying

with all applicable rules promulgated by the commission regulating these practices;

or s. Failing to notify the commission within 30 days of having been convicted of any

crime, including any sex offense that would qualify the licensee for registration

pursuant to section 2 of P.L.1994, c. 133 ( C.2C:7-2 ) or under an equivalent statute of another state or jurisdiction, misdemeanor or

disorderly persons offense, or of having been indicted, or of the filing of any formal

criminal charges, or of the suspension or revocation of any real estate license issued

by another state, or of the initiation of formal disciplinary proceedings in another

state affecting any real estate license held, or failing to supply any documentation

available to the licensee that the commission may request in connection with such

matter; or t. The violation of any of the provisions of R.S.45:15-1 et seq. or of the administrative rules adopted by the commission pursuant to the provisions

of R.S.45:15-1 et seq. The commission is expressly vested with the power and authority to make, prescribe

and enforce any and all rules and regulations for the conduct of the real estate brokerage

business consistent with the provisions of chapter 15 of Title 45 of the Revised Statutes. If a licensee is deemed to be guilty of a third violation of any of the provisions

of this section, whether of the same provision or of separate provisions, the commission

may deem that person a repeat offender, in which event the commission may direct that

no license as a real estate broker, broker-salesperson, or salesperson shall henceforth

be issued to that person.